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ISA rates def on the up. Comparison
West Brom FR ISA 5yr offering 5.25%. As a comparison I opened a 5yr with Nottingham a year ago 4.23%. If I'd invested £20,000 I would be missing out on £204 p.a.
Comments
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Over a year ago I grabbed a Shawbrook 5 year fix at 4.12%, which wasn't the highest rate around but I thought it would be useful to be able to add funds throughout the term (of course that is now not being considered!)
Minimum deposit was £1000. If I keep it fixed for the 5 years I'd get £1223 out. If I withdrew now and lost a year's interest, after 4 years in West Brom it'd be worth £1227.
Worth doing the maths to work out if the withdrawal penalty is worth taking.
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Interest rates are predicated by the markets to have another 3 rises in the next 12 months.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.3 -
I was going to fix with Nat West but can see that slowly interest rates are going up. I should think they'll be better in April with everyone competing for the new ISA year.
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Although IIRC, the markets around 12 months ago were indicating the same ( or was it 3 cuts ?) and it never happened.
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The West brom has stuck its neck out with that 5.25% 5 year fix and will have presumably hoovered up anyone who's willing to fix now for five years. Are we going to see the same scenario with the one year fix?
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Predicting the unpredictable….
Prior to the credit crunch, interest rates were predicted to rise. They went on to historic lows.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It isn't all or nothing, you can nibble on every attractive account and build a ladder of them with varying durations and hedge your bets.
This West Brom account has the option to pay interest away monthly so if rates move higher you can at least invest that at a higher rate elsewhere sooner rather than later.2 -
typical gone to open and it says closed
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No doubt got what they needed for specific mortgage backing purposes.
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